PENGARUH CORPORATE GOVERNANCE, LEVERAGE DAN INVESTMENT OPPORTUNITY SET TERHADAP INTEGRITAS LAPORAN KEUANGAN

Abstract

This research aimed to axamine and analyze the effect of corporate governance, leverage and investment opportunity set on financial statement integrity. While, corporate governance was measured by independent commissioner, audit committee, director board, institutional ownership and managerial ownership. Moreover, the population was manufacturing companies which were listed on Indonesia Stock Exchange (IDX) during 2014-2018. Furthermore, the data collection technique used purposive sampling. In line with, there were 37 samples per year on 137 firm years. Additionally, the hypothesis testing used multiple linear regression. In addition, the research result concluded independent commissioner did not affect financial statement integrity, since companies’ supervision was very low. Likewise, institutional ownership did not affect financial statement integrity, as lack of stock monitoring which institutional or non-bank owned which will cause fraud on company reports. On the other hand, audit committee affected financial statement integrity. Likewise, director board as well as managerial ownership affected financial statement integrity. Similarly, both leverage and investment opportunity set affected financial statement integrity of manufacturing companies which were listed on Indonesia Stock Exchange (IDX) during 2014-2018.
Keywords: corporate governance, leverage and investment opportunity set, financial statement integrity